AI Stock Surges Over 2,200% Post Stock Split, Appearing Modestly Priced
After a 34.86% plunge in Sezzle's (SEZL) stock price following its second-quarter earnings report, analysts remain optimistic about the fintech company's future. Despite the recent dip, Sezzle's stock still shows a 1-year return of over 300%, indicating strong investor interest over the medium term[1].
The optimistic outlook is supported by Sezzle's impressive financial performance. The company reported a 70.14% year-over-year increase in revenues, reaching $271.13 million, and earnings more than doubling, with a 1006.26% increase[2]. Sezzle's adjusted net income grew by 92% in the most recent quarter compared to the same period in 2024.
Sezzle, a buy-now-pay-later fintech company, is expected to produce at least $170 million in adjusted EBITDA for the full year[3]. The company's stock trades with a multiple of less than 24 times forward earnings expectations, suggesting it could be undervalued[2].
However, it's essential to understand that investing in Sezzle is not a sure thing. The stock is known for its volatility, with a high beta of 9.15, making it quite sensitive to market movements[2]. Despite this, Sezzle's board authorized a $50 million share repurchase plan, demonstrating management's confidence in the company's future[2].
The BNPL market in the United States, which was $257 billion in 2024, still represents a massive growth opportunity[4]. Buy-now-pay-later and point-of-sale financing make up just 2% of total commerce transaction value in the United States[4]. Sezzle's annualized GMV is just 1.4% of the overall BNPL market, indicating room for expansion.
Analysts maintain a strong buy rating with an average 12-month price target of approximately $124.33, suggesting a potential upside of nearly 30% from current levels[2]. Sezzle's management expects 60%-65% year-over-year revenue growth[3].
Investors appear to be viewing the current dip as a potential buying opportunity given the robust fundamentals and strong buy analyst recommendations[2][5]. However, high volatility means risk remains elevated.
In summary, Sezzle's second-quarter earnings and recent plunge have led to near-term caution in the market, but analyst forecasts project approximately 30% upside with a strong buy rating, driven by impressive revenue growth and profitability gains[2][5]. Despite the volatility, Sezzle's strong financial performance and growth potential make it an attractive investment opportunity for those willing to accept the risks.
[1] Sezzle Stock Plunges More Than 30% After Second-Quarter Earnings Report. (2025, August 22). Seeking Alpha. Retrieved from https://seekingalpha.com/news/3819668-sezzle-stock-plunges-more-than-30-after-second-quarter-earnings-report
[2] Sezzle Q2 Earnings: Here's What to Know. (2025, August 11). The Motley Fool. Retrieved from https://www.fool.com/investing/2025/08/11/sezzle-q2-earnings-heres-whats-to-know/
[3] Sezzle's Q2 Earnings: What Investors Need to Know. (2025, August 11). InvestorPlace. Retrieved from https://investorplace.com/2025/08/sezzles-q2-earnings-what-investors-need-to-know/
[4] The Buy Now, Pay Later Boom: Sezzle Stock. (2025, July 26). The Motley Fool. Retrieved from https://www.fool.com/investing/2025/07/26/the-buy-now-pay-later-boom-sezzle-stock/
[5] Sezzle Stock: What to Know Before the Q2 Earnings Report. (2025, August 10). The Motley Fool. Retrieved from https://www.fool.com/investing/2025/08/10/sezzle-stock-what-to-know-before-the-q2-earnings-report/
- Future investments in Sezzle's stock might strategy be influenced by analysts' positive outlook, considering the company's robust financial performance and strong revenue growth projections.
- Despite the stock's volatility and market sensitivity, an undervalued multiple of less than 24 times forward earnings expectations suggests potential investment opportunities for those willing to take risks.
- The growth potential of the buy-now-pay-later industry, along with Sezzle's small share in the United States market compared to its overall size, indicate significant room for expansion, further supporting the case for investing in Sezzle's stock.
